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‘‘The materials and energy sector have underperformed today due to weaker commodity prices overnight and a rising US dollar,’’ CMC Markets sales trader Ben Taylor said in a research note. ‘‘However, the Westpac first half result helped to give the banks reason to move higher.’’

Westpac said first half net profit fell 25 per cent to $2.97 billion due to growing bad debts and rising costs associated with setting up the Bank of Melbourne. The result was broadly in line with market consensus.

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The bank also announced an improved fully-franked dividend of 82 cents per share, up from 80 cents in the prior corresponding period.

Two of the big four retail banks posted gains - Westpac rose 22 cents to $22.91 and National Australia Bank ended 10 cents firmer at $25.20. Commonwealth Bank was steady at $52.68 and ANZ slipped 16 cents to $23.64 after two broker downgrades.

Finance-linked stocks rose 0.1 per cent, while the best-performing sector was consumer staples, which advanced 0.4 per cent.

E L & C Baillieu Stockbroking director Richard Morrow said the market was on hold prior to the federal budget.

‘‘The market is very quiet in the lead-up to the budget next Tuesday,’’ Mr Morrow said. ‘‘It seems to be still not finalised at present, and that’s keeping a lid on things.’’

In other news, retailer Harvey Norman said pre-tax profit for the first nine months of the financial year dipped 25 per cent as sales continued to fall in the three months to March. The stock slid 3 cents to $2.04.

A number of other retailers also struggled - JB Hi-Fi fell 14 cents to $9.40, The Reject Shop backpedalled five cents to $11.75 and Billabong was six cents lower at $2.54.